Cipla will form a joint venture Biopharm SPA, the Algeria-based pharmaceutical product manufacturer and distributor, for manufacturing and marketing respiratory products. As per the agreement, Cipla (EU) Limited, the Mumbai-based drug maker’s wholly-owned subsidiary, will hold a 40 percent stake in the JV while the remainder will be held by a Biopharm-led Algerian consortium. The joint venture company is expected to make an investment of up to $ 15 million in the construction of a manufacturing facility. Cipla (EU) Limited is initially expected to invest $ 6 million in the JV.
“A binding term sheet has been entered into with the company's existing partner, Biopharm SPA, for establishing a joint venture company in Algeria. The JV will manufacture and market respiratory products facilitating Cipla’s front-end presence in Algeria,” said Cipla Ltd in a BSE filing.
The transaction is subject to execution of definitive agreement and applicable approvals, added Cipla.
“A binding term sheet has been entered into with the company's existing partner, Biopharm SPA, for establishing a joint venture company in Algeria. The JV will manufacture and market respiratory products facilitating Cipla’s front-end presence in Algeria,” said Cipla Ltd in a BSE filing.
The transaction is subject to execution of definitive agreement and applicable approvals, added Cipla.